Marketing plan for s a n t a l JSC ( 2018 – 2020 )

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGÔ VĂN THẮNG MARKETING PLAN OF S.A.N.T.A.L JOINT STOCK COMPANY IN PERIOD OF 2018 – 2020 KẾ HOẠCH MARKETING CÔNG TY CỔ PHẦN S.A.N.T.A.L GIAI ĐOẠN 2018 - 2020 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGÔ VĂN THẮNG MARKETING PLAN OF S.A.N.T.A.L JOINT STOCK COMPANY IN PERIOD OF 2018 – 2020 KẾ HOẠCH MARKETING CÔNG TY CỔ PHẦN S.A.N.T.A.L GIAI ĐOẠN 2018 - 2020 Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƢỜI HƢỚNG DẪN KHOA HỌC: TS TRẦN HUY PHƢƠNG HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… ACKNOWLEDGEMENTS I would like to express my deepest gratitude to all of the following people for helping me complete my thesis Firstly, I would like to express my special thanks to my company for giving favorable conditions for my study and my master thesis completion at Hanoi school of business and management (HSB) Secondly, I am extremely grateful to all of the lecturers from the Department of Business Administration - HSB for providing me with research methods and professional knowledge during the course, especially the active and creative research skills My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process My profound gratitude is also conveyed to my instructor for his helpful assistance and guidance This thesis could have never been completed without his enthusiastic counsel and support Despite the efforts during the research period, there are still many limitations in the thesis I would hope to receive valuable comments from the teachers and coworkers to make this essay more complete Thank you very much./ Ha Noi, 2019 INDEX INDEX i LIST OF ACRONYMS iv TABLE CONTENT v DIAGRAM AND PICTURE CONTENT vi INTRODUCTION CHAPTER 1: THEORETICAL BASIS FOR MARKETING PLAN IN THE ENTERPRICES 1.1 Basic definition 1.1.1 Marketing definition 1.1.2 Marketing plan concept 1.2 Objectives, mission and roles of marketing plans 1.2.1 Objective of the marketing plan 1.2.2 Mission of the marketing plan 1.2.3 Role of marketing plan 1.3 Marketing mix tools 10 1.4 Process of developing marketing plan 12 1.4.1 Identify marketing goals 12 1.4.2 External environment analysis 13 1.4.3 Internal environment analysis 19 1.4.4 Plan your marketing plan 21 1.4.5 Budget estimates, evaluate the effectiveness of the plan 21 1.5 Content of the marketing plan 21 1.6SWOT matrix 22 CHAPTER 2: CURRENT SITUATION OF BUILDING MARKETING PLAN OF SANTAL JOINT STOCK COMPANY 24 2.1 General information about Santal Joint Stock Company 24 2.1.1 Overview of formation and development 24 2.2.2The main business areas of the company 24 i 2.2.3 Organizational structure 25 2.2.4 Some outstanding services of SANTAL JSC 26 2.2 Analysis of operating environment of SANTAL JSC 28 2.2.1External environment 28 2.2.2Internal environment 39 2.3 Swot matrix analysis 54 2.3.1 Summary of strengths, weaknesses, opportunities and challenges of SANTAL Joint Stock Company 54 2.3.2 Building SWOT matrix 56 2.4 Marketing planning development 58 2.4.1 Product planning 58 2.4.2 Price planning 59 2.4.3 Expansion distribution plan 60 2.4.4 Promotion planning 60 CHAPTER 3: SOLUTIONS FOR IMPLEMENTING THE MARKETING PLAN OF SANTAL JOINT STOCK COMPANY PERIOD 2018-2020 62 3.1 Mission, perspective, marketing objectives of SANTAL Joint Stock Company 62 3.1.1 Mission 62 3.1.2 Development perspective 62 3.1.3 Development Goals 62 3.1.4 Target market 63 3.2 Implementation of marketing plan of SANTAL JSC 64 3.2.1 Product planning implementation 64 3.2.2 Implementation of price planning 65 3.2.3 Implementation of distribution planning 66 3.2.4 Brand promotion implementation 66 3.2.5 Human resource utilization and plan implementation time 68 3.2.6 Financial planning, estimated implementation expenses 71 3.2.6 Evaluate the effectiveness of marketing plans 72 ii CONCLUSION 73 REFERENCE DOCUMENTS 74 iii LIST OF ACRONYMS JSC Joint Stock Company DVP Develop Value Proposition GDP Gross Domestic Product VND Viet Nam Dong ICOR Incremental Capital - Output Ratio iv TABLE CONTENT Table 1.1: Diagram of Swot matrix 23 Table 2.1: Top 10 famous beauty salon companies in Hanoi 36 Table 2.2: Human resource structure of the Company 39 Table 2.3: Some indicators reflect the financial capacity of the company 41 Table 2.4: Some technologies being applied in the Company today 43 Table 2.6: Number of products of SANTAL and its competitors 47 Table 2.7: Survey of products of SANTAL Company 48 Table 2.8: Service cost for each customer 49 Table 2.9: Survey on price of SANTAL company 50 Table 2.10: Survey on distribution channel of SANTAL Company 52 Table 2.11: Survey on advertising and promotion of SANTAL Company 54 Table 2.12: SWOT matrix synthesis 57 Table 3.1: Price list for advertising services in women's magazines 68 Table 3.2: Personnel assignment 69 Table 3.3: Implementation time of the marketing activities 70 Table 3.4: Estimated financial budget for marketing implementation 71 Table 3.5: Criteria for evaluating marketing effectiveness 72 v DIAGRAM AND PICTURE CONTENT Picture 1.1: Marketing mix programs 10 Picture 1.2: Process of developing marketing plan 12 Picture 2.1: Internal organizational structure of SANTAL JSC 25 Diagram 2.1: Vietnam's GDP growth rate from 2013 to 2017 29 Diagram 2.2: ICOR of Vietnam economy in the period of 2011 - 2017 31 Diagram 2.3: Customer dissatisfaction about physical characteristics 35 Diagram 2.4: Expenses for inviting training experts 44 Diagram 2.5: Number of the home care customers of SANTAL 51 Diagram 2.6: Average cost for Online Marketing of SANTAL Company 53 vi SANTAL should focus on using letter headers, envelopes, labels, bills for advertising purposes Advertise on the website of VSAPS and SANTAL JSC; Advertise in beauty magazines, women's magazines; Advertise with banners; Advertise on posters Besides, the company also needs to implement additional promotional programs and services on the main products and services such as giving dental floss for dental services; Giving face mask with skin care service Implement sales in the direction of direct marketing: conducting product introduction through the network, the company will draft the contents of the Company's beauty products and send to potential customers such as: office workers; customers in fashion stores, etc 61 CHAPTER 3: SOLUTIONS FOR IMPLEMENTING THE MARKETING PLAN OF SANTAL JOINT STOCK COMPANY PERIOD 2018-2020 3.1 Mission, perspective, marketing objectives of SANTAL Joint Stock Company 3.1.1 Mission - Meeting the beauty needs of domestic customers in general and in Hanoi in particular, making customers feel satisfied with the services of the Company - Build, develop and honor the SANTAL brand into a strong and prestigious brand throughout the country - Constantly building a professional working environment, rich in humanity, showing typical characteristics of whole Company; creating opportunities for professional development and career development to all members - Participating actively in community-oriented social activities, demonstrating the spirit of mutual support and civic responsibility for the country 3.1.2 Development perspective - Quality prestige and efficiency: Prioritize quality, always keep prestigious in all commitments with customers and partners; take work efficiency as the measurement - Providing value chain of beautiful and high quality beauty services, bringing perfect beauty to customers - Be active, dynamism and creative: Always be active in all jobs, reacflexibly, dynamically and always be creative in every situation, every challenge, difficulty to achieve the final committed goals - Be responsible - friendly - sustainable: Keeping the responsibility to the end, always creating friendly and human culture relations, building sustainable relationships on the basis of mutual benefits 3.1.3 Development Goals + General goal - Revenue and profit increased steadily about 11% to 15% - The number of familiar and loyal customers increased 62 - Recruit and successfully train employees in the field of cosmetic surgery, spa, high-tech therapy, marketing - Expanding from to establishments in Hanoi area, proceeding to expand more branches nationwide, all major provinces and cities have - Negotiate with all suppliers to get a variety of products with the cheapest prices, the best service - Good competition and dominate the market share of competitors Market share increased by 5% - 8% / year + Detail goal - Profit from plastic surgery services increases by 1.5% - 2% / year - Profit from high-tech therapy services increased by 0.7% - 1.3% / year - Profits from spa services increase by 6% - 7% / year - Advertisements on television 2-3 times a year - Promotions, discounts to attract customers 5-10 times - Number of leaflets per year is 4500-5000 sheets - The number of participating customers using the company's services increases by 5% - 10% - Recruit and train about 3-5 marketing staffs, surgeons, 3-4 nursing nurses 3.1.4 Target market - Main customers of SANTAL include many different objects with different demands from 20-40 years and older with skin care needs - Target customers are business people, office staffs Occupation: Working in companies, offices or owners of shops like restaurants - Living in the districts in Hanoi city - Income: from million / month or more - Psychology of customers about beauty: always want to be nice when going out, like to have a really beautiful skin, smooth screen, no wrinkles and slim body - Their standards set out for Spas per their needs for skin care are: seeing the effectiveness immediately after the care week such as smooth skin with reduction of 63 darkening, melasma After taking care many times, the skin must be beautiful and smooth 3.2 Implementation of marketing plan of SANTAL JSC 3.2.1 Product planning implementation SANTAL Joint Stock Company is required to have a dedicated team in product development to ensure professionalism and efficiency and promote creative spirit at work In order to accomplish this, the company needs to have a plan to improve the professional level of the product development team by organizing short-term professional training courses as regular activities This activity shall help to improve the quality of staffswhile not affect the production and business activities of enterprises At the same time, the staffs can update and acquire new knowledge, learn new skills and update market information to get the right awareness and keep up with the changes in the market as well as creating excitement for the employees, improving the operational efficiency of the company to obtain new policies more effectively In addition, the Company should have a plan to improve the quality of products and services through the following ways: + Improving therapeutic methods to bring higher effectiveness, limiting skin lesions, ensuring absolute safety + Improving the skills of specialists, medical doctors and staffs + Creating a comfortable, relaxing and pleasant space for customers when coming to the beauty services of the Company Estimated expenses: - Invite training experts: VND 200 million to VND 300 million / year - Expenses for developing instructional materials on therapy products and technologies: million to 3.5 million Estimated number of training sessions: - Training on plastic surgery: 15-20 sessions - Training on high-tech therapy: 20 to 25 sessions - Training on therapy methods: 3-5 sessions 64 3.2.2 Implementation of price planning With the aim of turning SANTAL’s image into a company providing high quality beauty products and services at competitive prices, the company can implement discount plans as follows: Apply discounts with customers who have large value bills Department in charge: Customer ServiceDepartment Applicable: Current customers of the company Implementation content: Bill amount Discount rate Bill amount from VND million to Discount 3% on total payment value VND 10 million Bill amount from VND 10 million to Discount 5% on total payment value VND 15 million Bill amount fromVND 20 million Discount 10% on total payment value Discount with customers in groups Department in charge: Customer ServiceDepartment Applicable: customers in groups Implementation content: Customers in groups of people with a total value of payment of over VND million will be reduced VND 200,000; Customers in groups of 10 people with a total value of payment of more than 10 million will receive a free facial care voucher (number of vouchers corresponding to the number of customers) Discount by service package Department in charge: Customer ServiceDepartment Applicable: Customers using service package, buying combos Implementation content: Combo package Combo of facial care days Combo of 10 facial care days Combo of body massage days Combo of leg and hand hair removal Implementation policy Customer is given free facial care day Customer is given free facial care days Customer is given a free body massage or free facial care days Customer is given a voucher for hair or armprit hair removal 65 3.2.3 Implementation of distribution planning Expanding business establishments and direct distribution channels Department in charge: Marketing Department, Customer Service Department Marketing department will appoint experienced staff to study market research to conduct market demand analysis in some districts such as Cau Giay, Dong Da and My Dinh to develop plans to open new businesses, etc For the company's current customers, the staffs of customer service department will also draft a notice about the company's discount and discount strategy for customers using the services with great value in order to stimulate service provision revenue at the current distribution channels Estimated expenses: 50 million VND Travelling expense: 30 million VND Working tool expense: 20 million VND Indirect channel development Developing indirect distribution channels through e-commerce companies is a new form of product distribution that SANTAL Joint Stock Company can consider to deploy Methods of implementation are as follows: Department in charge: Marketing Department Marketing department staffs shall contact an intermediary to provide health care and beauty vouchers on e-commerce sites such as sendo.vn and shopee.vn, etc with the accounts like Dealtoday_hanoi; Deallamdep Expense: Through intermediary accounts on Shopee, 5% discount rate Through the intermediary account on sendo.vn, the discount rate is 7% 3.2.4 Brand promotion implementation Advertising on banners Implementation time: from January 1st, 2019 - January 31st, 2019, the month of marketing plan implementation Department in charge: Marketing Department and Customer Service Department.The customer service department is responsible for designing banners (both in Vietnamese and English) and printing The business planning department will contact 66 to find locations to hang banners and plan on suspension times It is expected to hang the banners at major locations Horizontal size of the banner is 2.5m * 0.8m Estimated expense: 21million VND Advertise on the website of Vietnamese Society of Aesthetic and Plastic Surgery Person in charge: Company Director Mission: Director of SANTAL JSC will contact VSAPS to discuss the advertising price and image advertising time of the company so that VSAPS customers can know the beauty services of SANTAL JSC Estimated expense:01 advertising banner on the web with the size of 468 x 600mm with a maximum capacity of 40Kb if hosting at VSAPS and 100Kb if hosting outside.Average price is 500,000 VND / month Therefore, the estimated budget: 500,000 VND / month * 12 = 6,000,000 VND Advertise in beauty magazines Department in charge: Marketing Department Applicable: customers having demands on making beauty regardless of their gender and location (no matter they are in Hanoi or neighboring provinces) Estimated advertising: times (every months advertising once because this magazine publication frequency is every months) Estimated expense is around 1,500,000 VND /01 time of advertising * = 9,000,000 VND Advertising in women's magazines Department in charge: Marketing Department of the Company Currently the women's magazine is a popular magazine for women, a magazine with daily published publications and a wide distribution network Women are also the most popular magazine for women to update information on beauty services and health care services SANTAL can invite and provide information to the journalists of Women magazine to resonate with a series of magazine articles about SANTAL,a company with strengths in various types of Spa specializing in skin care Simultaneously with writing activities in the magazines, SANTAL can invest in magazine advertising in consecutive numbers 67 Table 3.1: Price list for advertising services in women's magazines Price for one time of advertising (VND) Position - size Black and Full Color White Whole page 260mmx375mm 65,000,000 50,000,000 Half page 260mmx185mm 33,000,000 26,000,000 1/4 page 127mmx185mm 17,000,000 13,500,000 1/8 page 127mmx90mm 8,800,000 7,000,000 1/16 page 60mmx90mm 4,700,000 3,600,000 1/32 page 60mmx42mm 2,600,000 1,900,000 Estimated expense: - Advertising in Women’s Magezines: Printing 1/8 colorful page, once a month or every or months depending on the occasion.Estimated expense is around 8,800,000VND/ month Advertise on the company's website Department in charge: Marketing Department and Customer Service Department The marketing department will plan advertising of images and products of the company in the period of 2019-2020 and then coordinate with the customer service department to edit the company's website in accordance with the marketing programs during this period Estimated expense: 20,000,000 đồng 3.2.5 Human resource utilization and plan implementation time At present, although SANTAL Joint Stock Company has a separate marketing department, the professional level of the staffs is not really high, the 68 number of employees is small Therefore, in order to ensure the effective marketing plan, the company needs to supplement human resources to serve marketing activities of about key employees, including: 01 AssistantManager (Bachelor of marketing management with experience): undertaking marketing management, reviewing and reporting to superiors 01 network management staff (Bachelor of Informatics): responsible for updating websites, searching online customer information, monitoring market information 01 bachelor of economics - business administration: specializing in market research, planning implementation methods Job assignments for the employees can be conducted as follows: Table3.2: Personnel assignment No Person/department in Job charge Surveying Marketing department Marketing plan development Marketing department Marketing department and Implementation of distribution activities Customer Service Department Conduct introduction, promotion of the Marketing department and products and services through Customer Service communication tools Department Service supply Staffs of Service Department Personnel group–HR & GA Human resource recruitment Departmetn Personnel group – HR & GA Huamn resource training Review, examine and report the results Pay for implementation expenses Departmetn 69 All the departments Accounting group – HR & GA Department Implementation time of the marketing activities is as the below table: Table3.3: Implementation time of the marketing activities Month Item 2018 2019 1…5 7…11 12 7…11 12 Surveying Marketing plan development Implementation of distribution activities Conduct introduction, promotion of the products and services through communication tools Service supply Human resource recruitment Huamn resource training Review, examine and report the results Pay for implementation expenses Source: Self-development by the author 70 2020 7…11 12 Notes: Yellow: Implementation process Red: Report to the manager 3.2.6 Financial planning, estimated implementation expenses Currently marketing activities of SANTAL JSC have not been developed, the budget for marketing activities has not been allocated enough, so in order to help the marketing plan be implemented effectively, the author estimate the budget for marketing activities as follows: Table 3.4: Estimated financial budget for marketing implementation No Activity Estimated budget Product development budget 253.5 Experts 250 Document printing 3.5 Price planning implementation budget 98 Price reduction 45 Discount 53 Distribution implementation budget 75 Indirect distribution channel 25 Direct distribution channel 50 Promotion implementation budget 64.8 Advertising on banners 21 Advertising on website Advertising on Beauty Magazines Advertising on Women’s Magazines 8.8 Invest in the Company’s website 20 Total 491.3 Source: Self-developed by the author 71 Thus, the total estimated budget for the implementation of marketing activities at SANTAL Joint Stock Company is about 491.3 million The company can borrow this amount from banks or use retained earnings to invest 3.2.6 Evaluate the effectiveness of marketing plans The assessment will be based on a comparison of the proposed marketing goals and the results obtained for the plans Criteria for evaluation are as follows: Table3.5: Criteria for evaluating marketing effectiveness Target Evulation criteria Evaluation Implementation method unit Sales and profits Annual report of the Compare with the Service increased by company's results set target department and 11% to 15% accounting department Market share Report on the turnover Compare with the Marketing achieves 1.2% of service suppky of set target department or the businesses in the out-sourcing if field of beauty spa in needed Hanoi Increase the Summarize the number Compare with the Marketing number of of existing customers set target Department customers by and new customers of 15% the company Source: Self-developed by the author 72 CONCLUSION Currently, in Vietnam, spa and beauty business have become a trendy business with more and more spas appearing in the big cities, especially Hanoi However, these Spas are still not enough to meet actual needs Customers are increasing at a rapid rate It is because awareness of Vietnamese people about spa and beauty is gradually changing From considering spa as a luxury destination, now beautifying the skin at the spa, recovering energy living at the spa after stressful working hours has gradually become an essential need for almost every one After nearly 10 years of establishment and development, SANTAL JSC has achieved many positive results in business activities but SANTAL's marketing has not been promoted, marketing activities have not been focused The company is still passive in providing beauty products and services to customers because the supply of the Company's products is heavily dependent on foreign suppliers Therefore, in the coming time, in order to have effective production and business activities, SANTAL JSC needs to develop detailed marketing plans In the dissertation topic of "Marketing Plan of SANTAL joint stock company in the period of 2019-2020" through the process of analyzing and setting up SWOT matrix, the author has developed the Company's marketing plan as follows: Product planning: Boosting the development of cosmetic surgery and hightech therapyproducts Price planning: The company builds a discount plan for customers using the service with great value, offers services in combo, gift vouchers and gifts Distribution plan: the company will appoint experienced employees to survey the market for directly contacting customers in order to select locations and open more businesses On the other hand, the company sends notifications to current customers about the discount program, new implemented services Promotion plan: The company applies the programs to advertise on banners, banners will be at locations, advertised on the Company website, advertised in beauty magazines and women's magazines About personnel for implementation: The company recruited more staffs and need to pay more attention to the training of human resources 73 REFERENCE DOCUMENTS Pham Tuan Cuong and Pham Ngoc Thuy (2006), Business Plan, Hanoi University of Technology SANTAL Joint Stock Company (2016), Report on business results of the Company in 2015 and development orientation in 2016 SANTAL Joint Stock Company (2017), Report on the business results of the Company in 2016 and development orientation in 2017 SANTAL Joint Stock Company (2017), Report on the business results of the Company in 2017 and development orientation in 2018 Nguyen Thanh Do (2003), Strategy and business development plan; Education Publishing House Truong Ton Hien Duc (2004), Customer Behavior in Marketing Managing, Theory and Actual Situation, Science and Technology Publishing House Ly Xuan Hong (2006) Prepare marketing plan for A92 and A95 gasoline products of An Giang Petroleum Company Master thesis of An Giang University Tran Thi Bich Lien, (2008) Financial management, University of Can Tho, Can Tho bookcases Pham van Nam (2004), Business strategy and policy, Statistical Publishing House 10 Pham Thi Thuy Nga (2007), Making marketing plan for export seafood processing company No.1” Master thesis of University of HCMC 11 Dang Hoang Duong (2014), Development of marketing planning for Basa fish products of Angiang Fisheries Import Export Join Stock Company 12 Phillip Kotler (2005), Basic Marketing, Transportation Publisher, 2005 13 Phillip Kotler (2001), Marketing Management, Thong Ke Publishing House, 2001 14 Nguyen Dinh Tho and Nguyen Thi Mai Trang (2004), Marketing Principles, Ho Chi Minh City National University Publishing House 74 15 Huynh Phu Thinh (2008), Lecture on research methods in business-management economics Faculty of Economics - Business Administration An Giang University 16 Nguyen Quang Thu, (2007) Basic financial management, Statistical Publishing House, Ho Chi Minh City 17 Nguyen Dinh Tho - Nguyen Thi Mai Trang (2007), Marketing planning "in Marketing Principles, Ho Chi Minh City: National University Publishing House, Ho Chi Minh City 18 Vo Ngoc Toan (2004), Marketing Theoritical Book, Can Tho University 19 Vo Thi Kim Tuyen (2006), Marketing Planning for Bosster products of Afiex company in the period of 2005 - 2006 Scientific journal of An Giang University 20 Do Thi Tuyet and Truong Hoa Binh (2005), Business Administration Book, Can Tho University 21 General Statistics Office (2018), The situation of economic growth in the period of 2011-2017 75 ... business plans must anticipate the safety of business plans Sustainable development goals In addition to the above objectives, marketing plans should support the goals of ensuring stable jobs for. .. as well as the treatment area, has different stylesbut they all aim to bring an absolute satisfaction to customers Currently, SANTAL JSC operates with the following steps: Continuously updating... understand strengths and weaknesses on that basis and be able to cope with market fluctuations and obtain appropriate strategies (Ly Xuan Hong, 200 6) Marketing Plan will demonstrate the enterprise''s